Press Release

ENRON COMMUNICATIONS AND REALNETWORKS FORM STRATEGIC ALLIANCE TO DELIVER BROADBAND STREAMING MEDIA SERVICE

PORTLAND, Ore. and SEATTLE - Enron Communications, Inc., a leader in the delivery of high bandwidth business information and applications, and RealNetworks (Nasdaq: RNWK), the recognized leader in streaming media, announced today that they have formed a strategic alliance to deliver broadband streaming media services over the Enron Intelligent Network, which was also announced today. As part of this strategic agreement, Enron Communications will deploy RealSystem™ G2 technology over the Enron Intelligent Network.

“The Enron Intelligent Network offers a dynamic communications environment that extends far beyond the classic definitions of static infrastructure based on fibers, switches and billing systems,” said Joe Hirko, president and CEO of Enron Communications. “Enron is committed to bringing next generation services and applications to the desktop market, and we are teaming up with the leader in streaming media for the public Internet to bring immediate value to enterprise customers and content providers.”

“The Internet today does not have an adequate infrastructure or architecture that is reliable and scalable to deliver broadcast-quality, high bit rate streaming media,” said Len Jordan, senior vice president, Media Systems, RealNetworks, Inc. “We believe that the Enron Intelligent Network is meeting this challenge, and we applaud Enron Communications’ decision to choose streaming media as the initial application for their Intelligent Network. This truly marks a pivotal event in the development of the Internet as the next powerful mass medium.”

The initial application to stream over the Enron Intelligent Network will be high bit rate streaming media made possible through RealSystem G2 and Enron’s InterAgent technology. Together, RealSystem G2 and the Enron Intelligent Network will provide users a state-of-the-art broadband media experience.

RealSystem G2 incorporates a number of features critical to delivering a high-quality media experience. SureStream™, combined with RealVideo® G2 (incorporating Intel’s Streaming Web Video technology) delivers automatic and scalable video ranging from 20Kbps to 1Mbps. RealAudio® G2 delivers improved frequency response and stereo and near-CD quality capabilities over narrowband and broadband connections. Through the support of Synchronized Multimedia Integration Language (SMIL), RealSystem G2 enables rich multi-stream content to be delivered over a wide range of modem connections.

About the Enron Intelligent Network

The Enron Intelligent Network (EIN) is an architecture based on a unique approach to networking through distributed servers, Enron InterAgent middleware and Enron Communications’ Pure IP technology. The intelligence of the network comes from Enron Communications’ standards-based InterAgent, a real-time intelligent messaging technology that supports the development and maintenance of distributed applications across diverse network environments. EIN brings to market a reliable, bandwidth-on-demand platform for delivering data, applications and streaming rich media to the desktop. EIN will allow customers to access on-the-fly capacity, tiered quality of service, data, application and content capabilities purchased entirely on an as-used basis.

About Enron Communications

Enron Communications, a wholly owned subsidiary of Enron Corp. (NYSE: ENE), is focused on delivering high quality, high bandwidth screen-to-screen applications. Enron Communications is building a long-haul fiber-optic network on strategic routes throughout the United States in an effort to create a data-centric national Pure IP backbone known as the Enron Intelligent Network. It is extending the capabilities of that network through agreements with ISPs and carriers seeking to generate new revenue sources and improved services.

About Enron Corp.

Enron Corp. is one of the world’s leading integrated natural gas and electricity companies. The company, which owns approximately $30 billion in assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron’s Internet address is www.enron.com, the stock is traded under the ticker symbol, “ENE.”

About RealNetworks

RealNetworks (Nasdaq: RNWK), based in Seattle, WA, is the recognized leader in the streaming media market. It develops and markets software products and services designed to enable users of personal computers and other consumer electronic devices to send and receive audio, video and other multimedia services using the Web. RealNetworks can be found on the World Wide Web at www.real.com.

RealSystem, RealAudio, RealVideo, SureStream are trademarks or registered trademarks of RealNetworks, Inc. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.

Click here to download this press release in Microsoft Word format.

For additional information please contact:

Tracy Smith

Enron Communications

tracy_smith@enron.net

(503) 464-7837

Kari Day

RealNetworks

karid@real.com

(206) 674-2358